GEORGE TOWN: JHM Consoli-dation Bhd aims to expand its market share for automotive lighting in North America with a focus on designing and producing automotive forward lighting applications for automobiles.
Group executive director Khor Thean Lee told StarBiz that JHM had entered into a collaborative agreement with MLS Automotive Inc to explore the production of high-brightness LED headlamps for the North American market.
“MLS is our biggest customer. About 40% of the group’s revenue for 2017 would come from MLS.
“Next year, we are projecting that the revenue contribution from MLS would exceed 50%,” he said after signing the collaborative agreement with MLS.
“The automotive rear lamp projects we have with MLS presently are worth about RM90mil,” he added.
According to Khor, about 80% of the group’s automotive lighting products are sold to North America, primarily to the United States and Canada.
On the group’s capital expenditure (capex) for 2018, Khor said JHM would spend RM20mil to upgrade all its eight manufacturing facilities in Sungai Petani, Kedah.
“This would be the highest allocation for capex. All the plants are producing parts and components for the automotive and aerospace industries.
“We recently secured a contract with a US customer to make precision tooling parts for aircraft. We are working on a deal to make driver boards for interior lighting of aircraft,” he said.
The group is also negotiating for a contract to produce general lighting applications for the European market, Khor said.